High grade cosmetics overflow into Vietnam

In June 2006, Lancôme, a leading French cosmetics brand, officially came to Vietnam after setting foot in 160 other countries worldwide. According to the company, Vietnam is a potential market for cosmetic products. In this country, the average income per capita remains low; however, there is a vast number of customers using high-grade cosmetics.

In September 2006, Japan ’s Menard decided to introduce its products in HCM City after two years of successfully marketing the products in Hanoi . The US ’ QGirl high-grade cosmetics have also set foot in Vietnam . In addition, other famous names like Estée Lauder, Clinique, Clarins, and Clé de Peau appear now in big trade centres nationwide.

Big cosmetic companies are targeting customers over 30 years of age who have the monthly income of VND6mil ($375) and higher. The companies try to conquer Vietnamese customers by offering products specifically designed for Asian women.

Lancôme, for example, said that the company had conducted some 400 surveys with 85,000 women in the last five years to make the products suitable to the climate and the skin of Asian people. This explains why the whitening cream Blanc Expert Neurowhite is only selling in Asian countries.

High-grade cosmetics are selling well in Vietnam despite their high prices. Menard Fairlucent whitening cream for daytime, for example, is selling at VND911,000/unit ($56.93), while lipstick is priced between VND260-890,000/unit ($16.25 - $55.6).

Luu Hong Hoa, a regular purchaser of Clé de Peau’s products, said that the advantage of big cosmetic companies is that they focus not only on selling products, but also on providing additional customer-care services. Shiseido has become well known in Vietnam thanks to its aesthetics centres, which provide a wide range of services, from skin and hair care to relaxation services. The company plans to market products for men by the end of 2007, which shows that Vietnamese men are also potential customers of cosmetics companies.